Hersha Hospitality has signed an agreement with an unnamed private equity firm based in north-east US to buy Capital Hill Suites, Washington for $47.5m.
The 152-room hotel is located one block from the congressional complex and the US Supreme Court.
The acquisition is expected to be funded by an assumption of $32.5m of existing debt, as well as cash on hand. Hersha says the move is part of the company’s strategy to expand in Washington and achieve cost savings through a larger operation in the area.
The hotel completed an $8m renovation in 2008, requiring minimum capital expenditures over the near term.